iolite Files Formal Complaint with Securities Regulatory Authority and Calls for the Immediate Resignation of Chairman Pierre Lépine and CEO & President Jean Martineau

Business Wire

30-06-2025

FREIENBACH, Switzerland--(BUSINESS WIRE)--iolite Partners Ltd. ('iolite'), the largest shareholder of Dynacor Group Inc. (TSX: DNG, 'Dynacor'), announces that it has filed a formal complaint with the Quebec Autorité des marches financiers regarding potential disclosure violations by Dynacor. The complaint cites potential disclosure failures including in the lead-up to Dynacor's June 17, 2025 annual general meeting ('AGM') and in subsequent communications.
Despite significant use of company resources to secure votes, the narrow margins in the Chairman's (60.98%) and CEO's (73.77%) re-election demonstrate the absence of any true mandate or vote of confidence in Dynacor's leadership.
The full complaint calls for investigation into potential:
Undisclosed loss of key talent and resulting risks.
Large-scale dismissals and forced resignations of longstanding personnel in Peru — without reason, notice, and severance — followed by the hiring of unqualified individuals at inappropriate pay levels, exposing the Company to serious operational, legal, and financial risks.
Failure to disclose the material deterioration of Veta Dorada — the subsidiary that generates 100% of the Company's revenue — misleading investors about the true state of the business.
Issues regarding the credibility of Dynacor's international expansion narrative given the obvious deterioration of the core business and loss of key talent, used to justify both a contested capital increase in January 2025 and the re-election of directors at the AGM.
Failure to revise guidance despite clear evidence of operational decline.
iolite has filed this complaint in good faith, in the interest of all shareholders, to accelerate long-overdue leadership change at Dynacor and to ensure transparency and proper disclosure. The scope and severity of management's failures leave no credible reason for Messrs. Lépine and Martineau to remain in office; their continued presence exposes the Company to unacceptable operational, financial, and reputational risk.
At the June 17, 2025 AGM – and again in a June 19, 2025 press release – management celebrated past achievements, touted international expansion, and reaffirmed optimistic guidance even as key operating metrics seem to have deteriorated.
Barely a week later, on June 27, the Company issued a self-contradictory release announcing a 'restructuring in Peru,' allegedly triggered by 'employee practices contrary to the Corporation's values and Code of Conduct,' yet presented as part of a global growth plan requiring more head-office hiring. Management hired an external firm to review the evidently serious matter, but offered no explanation of what went wrong or why a review was necessary, leaving investors completely in the dark.
iolite remains convinced Dynacor has real potential and is undervalued: it is a leading niche player in an attractive market, with nearly half its market cap in cash and positive free cash flow through Q1 2025. But the status quo is untenable. Dynacor urgently needs competent, decisive leadership of unimpeachable integrity – leadership capable of restoring trust, stabilizing operations, and unlocking the Company's full value for every shareholder.
To those who understand the issues, the solution is obvious. iolite stands ready to help.
About iolite
Founded in 2011 iolite Capital is a Switzerland-based investment manager with a focus on hidden champions: good businesses at attractive valuations. iolite serves a select circle of private and institutional clients who share the same entrepreneurial mindset, are willing to invest for the long term, and who would like to have first-hand access to a dedicated portfolio manager with substantial and meaningful skin in the game. Using a private equity approach, iolite conducts deep fundamental research, constructively engages with management, and adopts a long-term investment horizon. For more information on iolite, please visit www.iolitecapital.com.